A history of glass making in the North East has been shattered after the closure of the last major glass factory was announced.

The end of the ARC base on Leopold Street in Sunderland has shattered hopes of a revival of an industry which has been part of the city's life for 1,300 years.

A total of 240 workers will lose their jobs when French owned ARC - formerly Newells - closes its factory in September this year. A programme to find new jobs has begun.

ARC will retain just 25 staff to distribute its products from the factory's warehouse.

ARC's decision is the second blow to the glass industry in Sunderland in recent months after Corning revealed it was shutting its glass blowing factory in October with the loss of 100 jobs.

The only other glass manufacturing left in the city is in the artistic and creative glass sector through the National Glass Centre and the Cohesion Glassworkers network.

The Arc International Cookware (AIC) factory has only been operating at 75% capacity in recent months and made a loss of £760,000 in 2006.

The French company said the Sunderland plant could not continue when raw materials were much more expensive here than on the continent, and energy prices have doubled in the last four years.

Francisco Azcona, general manager of AIC, said: "The decision is based solely on the continuing adverse situation in our plant and in no way reflects on the performance of the employees.

"We must now do everything we can to help them in this transition period. I would like once again to express my gratitude for all their efforts."

Mick Thurlbeck, Sunderland committee chairman for the North East Chamber of Commerce, said: "It's about quality, and Sunderland is renowned for the quality of its glass, but people are buying from elsewhere."